May 11, 2026
Video game consoles, since they were first released in 1972, have followed a fairly predictable pattern.
New systems hit stores, usually to overwhelming demand. Discounts are nowhere to be found, aside from an occasional bundle package, which includes a popular game with the hardware. A few years into the sales cycle, though, prices drop as components become cheaper and savings on mass production kick in. The pace of those price cuts varies, but hardware prices never go up.
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The ninth-generation of gaming hardware, though, has seen the old rules thrown out. Nintendo (TYO: 7974) is the latest company to break new ground, announcing that it is increasing the price (1) of the Switch 2 system from $450 to $500 in the U.S to come into effect on September 1, 2026. (Other regions will see higher prices as well.)
"We sincerely apologize for the impact these price revisions may have on our customers and other stakeholders, and we deeply appreciate your understanding," the company said when announcing the price changes.
The move comes in response to the quickly escalating price of computer memory. Artificial intelligence companies have been snatching that up at breathtaking pace as data centers are built out.
As a result, Nintendo told investors it expected to sell fewer consoles than it had previously forecast. The company has now estimated that it will sell 16.5 million Switch 2s (2) in FY27, a 16.9% drop compared to total volume sold in FY26.
That resulted in an 8.4% drop (3) in the company's stock on Monday, even though Nintendo has historically been overly conservative in its forecasts.
Another hit system
The Switch 2 has been a sales smash since its release last June. Nintendo says it has sold 19.86 million units to (4) date (along with nearly 49 million software units alongside it). Before the price hike, it was selling faster than the original Switch, which went on to become Nintendo's best-selling console system. (The original took a full calendar year to hit the 15 million mark.)
The Switch 2 has already outsold the lifetime totals of the Wii U and is closing in fast on the Nintendo GameCube's total sales.
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Analyst Doug Creutz of TD Cowen said in a note to investors that the price hike was "better than feared" but he was more concerned about the company's software guidance, which was also lowered.
"Guidance appears to suggest that the company doesn't have any major 'tentpole' titles coming this year – a significant surprise for the second year of the cycle," he wrote. "It's possible that something was planned for this year but then internally delayed into 2027, but generally speaking, we would have expected Nintendo to ensure that the year featured a major franchise outing."
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Other price hikes
2026 is proving to be an expensive year to be a gamer. Nintendo's price hike on the Switch 2 isn't the only gaming hardware price increase. In March, Sony (5) increased the price of the PlayStation 5 by as much as $150, with the high-end PS5 Pro now selling for $900. Last October, Microsoft increased the prices (6) of the Xbox Series X and Series S for the second time in six months. Those systems now cost $650 and $449.
While memory prices are the primary reason behind the price increases, tariffs play a role as well. Nintendo, in March, filed a motion with the U.S. Court of International Trade to recover the money paid for tariffs, plus interest.
"Plaintiff has suffered injury caused by the IEEPA Duties," the filing reads (7). "If not remedied … [Nintendo] will suffer imminent and irreparable harm."
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Nintendo (1),(2),(4); CNBC (3); PlayStation Blog (5); Xbox Support (6); Scribd (7)
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Chris Morris is a veteran journalist with more than 35 years of experience at many of the internet's biggest news outlets. In addition to his activities as a writer, reporter and editor, Chris is also a frequent panel moderator and speaker at major conferences, including CES and South by Southwest.
